1

A Project Report

On

“Alternative fuels of LPG such as PNG”

(At Noida, Greater Noida and Ghaziabad)

Submitted to

Indian Oil Corporation Limited

By

Shilpa Kapoor
BIT, Noida

PREFACE

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In the broader sense training is necessary to make the students of professional institutions
familiar with industrial environment. This not only helps professionals to speedily
accommodate themselves in industries but also to have better usage of their studies.

To be dynamic, strategic and work aggressively they need to know the policies , procedures
and trends going in the present industrial environment apart from their studies The training
fulfils all these needs. Whether it is the question of demonstrating a modernized procedure,
step by step to an old production hand or guiding a new division head through the intricacies
of preparing his own budget, the responsible supervisor or manager must make the trainee
learn and communicate.

The purpose and objective of the study is to analyze the different aspect of financial and
marketing position of the organization and list out the suggestions, recommendations based
on the studies.

The main source of study is primary and secondary data collected from the Indian Oil
Corporation Limited and Indraprastha Gas Limited and the survey conducted.

The various modern and standard tools to achieve the objectives of the study carry out the
analysis of the data.

ACKNOWLEDGEMENT

A formal statement of acknowledgement will hardly meet the ends of the justice in the matter
of expression of my deeply felt sincere and allegiant gratitude to all those who encouraged
me and helped me during my study.

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It gives me immense pleasure, to express my unfeigned and sincere thanks and gratitude to
my supervisor Shri. R.K.VERMA, Chief Area Manager, for his valuable guidance sustained,
encouraged and constructive critic at every stage of work, without which it would have never
been accomplished.

I am thankful to the staff members of Indian Oil Corporation Ltd. Marketing Terminal, who
gave me an opportunity to spend these two months in their organization and enrich my
knowledge.

I also extend my heartiest thanks to all the faculty members of Birla Institute of Technology,
Noida for gracing me with the knowledge that I could use in the completion of this training.

I am also very thankful to all my respondents who took time out of their busy schedules and
helped me in carrying out this project.

(SHILPA KAPOOR)

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 DECLARATION

I hereby declare that this project report entitled “ALTERNATIVE FUELS OF LPG such as
PNG” is prepared by me towards the partial fulfillment of the requirement of the Bachelor of
Business Administration course of the Birla Institute of Technology, Noida under the
guidance of Miss. MEENAKSHI SHARMA.

I also declare that this project report has not been submitted at any time to any other
university.

(SHILPA KAPOOR)

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 TABLE OF CONTENTS

PREFACE

ACKNOWLEDGEMENT

DECLARATION

CHAPTERS TOPIC PAGE NO.

Chapter 1 Introduction

1.1 COMPANY PROFILE

• INTRODUCTION TO IOCL 08

• VISION OF THE COMPANY 10

• VALUES OF THE COMPANY 11

• MISSION 12

• INDIAN OILA NATIONAL BRAND 13

• IOCL PRODUCTS 14

• IOCL SERVICES 17

• IOCL BRANDS 18

• SWOT ANALYSIS FOR IOCL 19

1.2 INTRODUCTION TO THE STUDY

• ABOUT LPG 21

• PROPERTIES OF LPG 21

• LPG AS A COOKING FUEL 21

• ADVANTAGES OF LPG 22

• ABOUT PNG 23

• BENEFITS OF PNG 24

CHAPTERS TOPIC PAGE NO.

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Chapter 2 Objectives & Reseach Methodology

2.1 Objectives of the Study 26

2.2 Research Design 27

2.3 Sampling Framework 27

Chapter 3 Data Analysis and Interpretations 29

Chapter 4 Findings of the study 39

Chapter 5 Conclusion

5.1 Conclusion 40

5.2 Limitations of the Study 41

BIBLIOGRAPHY

ANNEXURE- 1. Questionnaire

2. List of respondents

3. Other Supporting Materials

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 Introduction to IOCL
VISION:
“A major diversified, transnational, integrated energy company, with national leadership and
a strong environment conscience, playing a national role in oil security & public
distribution.”

INDIAN OIL: INDIA’S DOWNSTREAM MAJOR:

Indian Oil Corporation is an Indian public-sector petroleum company. It is the highest ranked
Indian company in the latest Fortune ‘Global 500’ listings, ranked at the 125th position. It
began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed
in 1964, with the merger of Indian Refineries Ltd. Indian Oil and its subsidiaries account for
a 48% share in the petroleum products market, 34% share in refining capacity and 71%
downstream sector pipelines capacity in India. The Indian Oil Group of companies owns and
operates 10 of India's 20 refineries with a combined refining capacity of 60.2 million metric
tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two refineries of
subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and
Petrochemicals Limited (BRPL).

As the flagship national oil company in the downstream sector, Indian Oil reaches precious
petroleum products to millions of people every day through a countrywide network of about
35,600 sales points. They are backed for supplies by 167 bulk storage terminals and depots,
101 aviation fuel stations and 89 Indane (LPGas) bottling plants. About 7,593 bulk consumer
pumps are also in operation for the convenience of large consumers, ensuring products and
inventory at their doorstep.

Indian Oil operates the largest and the widest network of petrol & diesel stations in the
country, numbering over 18,643. It reaches Indane cooking gas to the doorsteps of over 50
million households in nearly 2,764 markets through a network of about 5,095 Indane
distributors.

At Indian Oil, customers always get the first priority. New initiatives are launched round-the-
year for the convenience of the various customer segments.

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It is India's largest company by sales with a turnover of Rs. 271,074 crore and profit of Rs.
10,221 crore for the year 2009-10.

As a leading public sector enterprise of India, Indian Oil has successfully combined its
corporate social responsibility agenda with its business offerings, meeting the energy needs
of millions of people everyday across the length and breadth of the country, traversing a
diversity of cultures, difficult terrains and harsh climatic conditions. The Corporation takes
pride in its continuous investments in innovative technologies and solutions for sustainable
energy flow and economic growth and in developing techno-economically viable and
environment-friendly products & services for the benefit of its consumers.

VISION OF THE COMPANY

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VALUES OF THE COMPANY

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 VALUES

CARE

(STAND FOR)

CONCERN
EMPATHY
UNDERSTANDING
CO-OPERATION
EMPOWERMENT

INNOVATION

(STAND FOR)

CREATIVITY
ABILITY TO LEARN
FLEXIBILITY
CHANGE

PASSION

(STAND FOR)

COMMITMENT
DEDICATION
PRIDE
INSPIRATION
OWNERSHIP
ZEAL & ZEST

TRUST
(STAND FOR)

DELIVERED PROMISES
RELIABILITY
DEPENDABILITY
INTEGRITY
TRUSTFULNESS
TRANSPARENCY

MISSION
• To achieve international standards of excellence in all aspects of energy and diversified
business with focus on customer delight through value of products and services, and cost
reduction.
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• To maximize creation of wealth, value and satisfaction for the stakeholders.

• To attain leadership in developing, adopting and assimilating state-of-the-art technology for

competitive advantage.

• To provide technology and services through sustained Research and Development.

• To foster a culture of participation and innovation for employee growth and contribution.

• To cultivate high standards of business ethics and Total Quality Management for a strong
corporate identity and brand equity.

• To help enrich the quality of life of the community and preserve ecological balance and
heritage through a strong environment conscience.

INDIAN OIL - A NATIONAL BRAND

IndianOil has been adjudged India's No. 1 brand by UK-based Brand Finance, an independent
consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted
Brand' in the 'Gasoline' category in a Readers' Digest - AC Nielsen survey. In addition,
IndianOil topped The Hindu Businessline's "India's Most Valuable Brands" list.
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However, the value of the IndianOil brand is not just limited to its commercial role as an
energy provider but straddles the entire value chain of gamut of exploration & production,
refining, transportation & marketing, petrochemicals & natural gas and downstream
marketing operations abroad. IndianOil is a national brand owned by over a billion Indians
and that is a priceless value.

Due to innovative initiatives, strong brand communications and sales promotion campaigns
conducted during the year, Indian Oil's branded fuels - XTRAPREMIUM petrol and
XTRAMILE diesel - maintained their firm leadership status, with a market share of 48.6%
and 59.6% respectively among branded fuels in the market. XTRAPREMIUM and
XTRAMILE are now available at 6,446 and 9,256 retail outlets of Indian Oil respectively.

Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at
another level. While quality, reliability and service remains the core benefits to our
customers, our stringent checks are built into operating systems, at every level ensuring the
trust of over a billion Indians over the last four decades.

IOCL Products
Indian Oil is not only the largest commercial enterprise in the country it is the flagship
corporate of the Indian Nation. Besides having a dominant market share, Indian Oil is widely
recognized as India’s dominant energy brand and customers perceive Indian Oil as a reliable
symbol for high quality products and services.

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Benchmarking Quality, Quantity and Service to world-class standards is a philosophy that
Indian Oil adheres to so as to ensure that customers get a truly global experience in India. Our
continued emphasis is on providing fuel management solutions to customers who can then
benefit from our expertise in efficient sourcing and least cost supplies keeping in mind their
usage patterns and inventory management.

Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at
another level. While quality, reliability and service remains the core benefits to our
customers, our stringent checks are built into operating systems, at every level ensuring the
trust of over a billion Indians over the last four decades.

The Retail Brand template of IOC consists of XtraCare (Urban), Swagat (Highway) and
Kisan Seva Kendra’s (Rural). These brands are widely recognized as pioneering brands in the
petroleum retail segment. Indian Oil’s leadership extends to its energy brands - Indane LPG,
SERVO Lubricants, Auto gas LPG, XtraPremium Branded Petrol, XtraMile Branded Diesel,
XtraPower Fleet Card, Indian Oil Aviation and XtraRewards cash customer loyalty
programme.

IOCL PRODUCTS IN THE MARKET

SERVO
Indian Oil's SERVO range of lubricants reigns as the undisputed market leader in the Indian
lubricants market. Known for its cutting-edge technology and high-quality products, SERVO
backed by Indian Oil's pioneering R&D, extensive blending and distribution network,
sustained brand enhancement and new generation packaging is a one-stop shop for complete
lubrication solutions in the automotive, industrial and marine segments.

In the retailing segment, besides Indian Oil petrol stations, SERVO range of lubricants is
available through a network of SERVOXpress stations, bazaar outlets and thousands of auto
spare parts shops across the country. The SERVO range includes over 500 lubricants and
1500 formulations encompassing literally every lubricant requirement.

The SERVOXpress is a one-stop shop for quick, easy and convenient auto care, providing
customers with a refreshing experience. The SERVOXpress stations have facilities for oil
change, tyre/battery checkups, A/C service, vacuum cleaning, perfuming, and
upholstery cleaning, polishing and lamination installation too.

INDANE LPG GAS

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Indane is today one of the largest packed-LPG brands in the world. Indian Oil pioneered the
launch of LPG in India in the 1970s and transformed the lives of millions of people with the
introduction of the clean, efficient and safe cooking fuel. LPG also led to a substantial
improvement in the health of women in rural areas by replacing smoky and unhealthy
chullahs with Indane. It is today a fuel synonymous with safety, reliability and convenience.
Indian Oil’s Indane LPG gas is used in 53 million homes as cooking fuel and commands
over48% market share in India.

INDIAN OIL AVIATION SERVICES

Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the most-
preferred supplier of jet fuel to major international and domestic airlines. Between one
sunrise and the next, Indian Oil Aviation Service refuels over 1500 flights – from the bustling
metros to the remote airports linking the vast Indian landscape, from the icy heights of Leh
(the highest airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar.

Indian Oil Aviation services have a market share of 65% with a network of 101 Aviation Fuel
Stations (AFS) meets complete aviation fuel requirement of the Defense services.

AUTO GAS
AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from
natural gas through fractionation and from crude oil through refining. It is a mixture of
petroleum gases like propane and butane. The higher energy content in this fuel results in a
10% reduction of CO2 emission as compared to MS.

XTRAPREMIUM PETROL
XTRAPREMIUM Petrol is India’s leading branded petrol boosted with new generation
multifunctional additives known as friction busters that prevents combustion chamber
deposits. XTRAPREMIUM is custom designed to deliver higher mileage, more power, and
better pick up, faster acceleration, enhanced engine cleanliness and lower emissions.

XTRAMILE SUPER DIESEL

Indian Oil’s XTRAMILE Super Diesel, the leader in the branded diesel segment is blended
with world-class ‘Multi Functional Fuel Additives (MFA). Commercial vehicle owners
choose XTRAMILE because they see a clear value benefit in terms of superior mileage,
lower maintenance costs and improved engine protection. A growing section of customers
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who own diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer
XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has brought in a
huge savings in the high mileage commercial vehicle segment. Transport fleets that operate a
large number of trucks crisscrossing the country are using XTRAMILE to not only obtain a
higher mileage but also for low maintenance costs.

XTRAPOWER FLEET CARD

The XTRAPOWER Fleet Card program is a complete smart card-based fleet management
solution for fleet operators and Corporate for cashless purchase of fuel & lubes from
designated retail outlets of Indian Oil through flexible pre-paid and credit facilities

The fleet card program also offers an exciting rewards program and unique benefits like
personal accident insurance cover and vehicle tracking facilities. In just under two years of its
launch, Indian Oil’s XTRAPOWER Fleet Card has emerged as the largest fleet card in the
country with the widest retail outlet coverage.

SUPERIOR KEROSENE OIL

Kerosene is distillate fractions of crude oil in the boiling range of 150-250°C. They are
treated mainly for reducing aromatic content to increase their smoke point (height of a
smokeless flame) and hydro fining to reduce sulphur content and to improve odour,
colour & burning qualities (char value).
Kerosene is used as a domestic fuel for heating / lighting and also for manufacture of
insecticides/herbicides/fungicides to control pest, weeds and fungi. Since kerosene is less
volatile than gasoline, increase in its evaporation rate in domestic burners is achieved by
increasing surface area of the oil to be burned and by increasing its temperature. The two
types of burners which achieve this fall into two categories namely vaporisers &
atomisers.

IOCL Services

Indian Oil provides a wide range of marketing services and consultancy in fuel handling,
distribution, storage and fuel/lube technical services. With a formidable bank of technical
and engineering talent, Indian Oil is fully equipped to handle small to large-scale
infrastructural projects in the petroleum downstream sector anywhere in the country. Our
project teams have independently or jointly as a consortium, have set up depots,
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terminals, pipelines, aviation fuel stations, filling plants, LPG bottling plants, amongst
others. Indian Oil’s fuel management system to bulk customers offer customized
solutions that deliver least cost supplies keeping in mind usage patterns and inventory
levels. A wide network of lubricant and fuel testing laboratories are available at major
installations which is further backed by sector-wise expertise in the core sectors of power,
steel, fertilizer, gas plants, textile mills, etc. Cutting edge systems and processes are
designed around one simple belief-to provide valuable customers with an unbeatable edge
in their business. Indian Oil’s supply and distribution network is strategically located
across the country linked through a customized supply chain system backed by front
offices located in conceivably every single town of consequence.

The wide network of services offered by Indian Oil, Marketing Division is well
maintained, which includes; commercial/reticulated LPG; total fuel management/
consumer pumps; Indian Oil Aviation Service; LPG Business (non-fuel alliances); loyalty
programs; retail business (non-fuel alliances) and SERVO technical services.

IOCL Brands:

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SWOT Analysis for IOCL
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External environment

Opportunity:
The IOCL has much opportunity in the present market conditions. This is because the
petroleum products have become a need for everyone and still contains a lot of scope for
customization. The various opportunities are listed below.

• Since the company has the maximum number of outlets and also the maximum number of
refineries in India, it can very easily go for extension at any point of time, and can introduce
any new products, which will get support from its huge market network.

• The company can make the buying process easier for the customers, by implying many
more schemes in the range of XTRAPOWER Fleet Card AND XTRAREWARD.

• The company can think over the issue to build its own pipelines, so that it will be an
independent player and it will also support its aviation fuel supply.

• Company has a great scope in E&P. It is already involved in E&P but only in a very limited
scale.

Threats:
Since the company is the market leader in the field, so have maximum threats from the other
players and many other issues. The lists of threats are given below.

• The foreign players with more advanced technology are the biggest threat for the company.

• The crude oil supply is also a big issue in front of the company, because the company
cannot fix its price and so, some time had operated in loss also.It is the biggest problem
because the maximum part of their crude is been imported.

• In future the market will welcome more private players, which will eat up its market share.

• If the Govt. Policies allow the private players to set their own price, the private player can
seriously harm the market share of IOCL.

Internal environment

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Strengths:

• IOC controls 10 refineries, by virtue of which it has a total share of around 40% of India’s
overall refining capacity. IOC has also acquired equity stakes in CPCL and BRPL, and in
2001, these refineries became subsidiaries of IOC.

• 58% of IOC’s refining capacity is located in the Northern and Western regions, which are
high demand and high growth areas

• Although its refineries are located the interior of the country and not near the major ports
IOC has a very strong distribution network by virtue of having a share of 48% in the
country’s product pipelines. The total capacity of these product pipelines is 49.79 MMT.

• IOC also acquired management control of the marketing company IBP, thereby
strengthening its position in these activities. It also has a dominant share in all segments in
terms marketing infrastructure. Its network includes 19830 retail outlets, 8000 LPG
distributors, and 6492 kerosene/LDO dealers.

• By virtue of entering into extensive joint venture agreements, and of its own initiative as
well, the company has a presence in various other related activities such as petroleum storage,
pipelines, lube additives, exploration, petrochemicals, gas, training and consultancy, etc.

• The company has already entered overseas markets such as Sri Lanka, Maldives, and Oman
and is presently considering entering Turkey through a JV. The company is in talks with
Caliak of Turkey to set up a 10 million TPA grass root refinery with an investment of $2
billion and establish retail business. IOC is also weighing the possibility of entering
Indonesia.IOC has also started exploring the overseas markets for increasing its scope of
operations. Its interests include downstream activities in Sri Lanka, Maldives, Oman, and
Nepal; interest in the lubes business in Maldives, Dubai, Bangladesh, Sri Lanka, etc; among
others.

Weakness:
The company is the market leader in the industry, but still it had many weaknesses such as:

• The major weakness for the company is the R&D. The company starts working on it.

• The petrochemical product development technology is another weakness for the company.

• The technological drawback, as compared to some major foreign player is another

weakness for the company

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INTRODUCTION TO THE PROJECT

ABOUT LPG
Liquefied petroleum gas is one of the most common and an alternative fuels used in the world
today. Liquefied petroleum gas is also called as LPG, LP Gas, or Auto gas. The gas is a
mixture of hydrocarbon gases used as a fuel for various purposes. This is mainly used in
heating appliances and vehicles and is replacing chlorofluorocarbons as an aerosol propellant.
It is also used as a refrigerant mainly to reduce damage to the ozone layer. LP gas is a
mainstay for cooking and heating in some areas of India and rural areas of the United States
and the other parts of the world. LPG is also used as alternate for petroleum and Diesel. The
main reason behind this being the soaring in the prices of the oil, LPG has emerged as much
preferred choice. LPG is a fossil fuel and can be refined from oil and natural gas. LPG is
basically a hydrocarbon with propane and butane as main constituent.

Properties of LPG

LPG is twice as heavy as air and half as heavy as water.

 LPG is colourless and odourless; hence an odorant is used to detect leaks.
 LPG can be compressed at a ratio of 1:250, which enables it to be marked in portable
containers in liquid form.
 LPG is safe fuel and ignites only within the specified LPG- Air ratio of 2% to 9%.
 A high calorific value of 11,900 Kcal/Kg results in high efficiency heat output.

LPG As Cooking Fuel

LPG is a gas at normal temperature and pressure. The gas is compressed into a liquid by
application of moderate pressure. This action of applying pressure reduces the volume by
approximately 240 times. When the pressure is released, which is done by opening the
cylinder valve, the liquid immediately becomes gas. The appliances that run on LPG are
highly efficient. LPG is very clean gas and is also quick, convenient and safe. It is cheaper
than most other fuels except perhaps kerosene but it does greatly outweigh the marginal extra
cost. It is delivered by gas agency directly at home.

ADVANTAGES OF LPG
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LPG has numerous advantages when compared to the other fuels available. With its high
energy output, instantly available heat, flexibility in use and environment friendliness has
become an important alternative energy source. It offers the following advantages:

 Clean Burning
 No soot, burners have a longer life - so maintenance is low
 No spillage as it vaporises at atmospheric temperature and pressure.
 Effects of corrosion are greatly reduced
 Instantly controllable flame temperature
 Avoids scaling and decarborising of parts
 Environmentally friendly fuel, with minimal sulphur content and sulphur- free emissions
 Very high efficiency with direct firing system
 Instant heat for faster warm-up and cool-down
 Free form peak time premium rates, unlike electricity. One rate round the clock
 Can be used for a variety of applications

ABOUT PNG

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There is some argument as to when the first crude oil pipeline was constructed. However, some say pipeline
transport was pioneered by Vladimir Shukhov and the Branobel company in the late 19th century. Others say oil
pipelines originated when the Oil Transport Association first constructed a 2-inch (51 mm) wrought iron
pipeline over a 6-mile (9.7 km) track from an oil field in Pennsylvania to a railroad station in Oil Creek, in the
1860s. Pipelines are generally the most economical way to transport large quantities of oil, refined oil products
or natural gas over land. Compared to shipping by railroad, they have lower cost per unit and higher capacity.
Although pipelines can be built under the sea, that process is economically and technically demanding, so the
majority of oil at sea is transported by tanker ships.

Oil pipelines are made from steel or plastic tubes with inner diameter typically from 4 to 48 inches (100 to
1,200 mm). Most pipelines are buried at a typical depth of about 3 to 6 feet (0.91 to 1.8 m). The oil is kept in
motion by pump stations along the pipeline, and usually flows at speed of about 1 to 6 meters per second (3.3 to
20 ft/s). Multi-product pipelines are used to transport two or more different products in sequence in the same
pipeline. Usually in multi-product pipelines there is no physical separation between the different products. Some
mixing of adjacent products occurs, producing interface. At the receiving facilities this interface is usually
absorbed in one of the product based on pre-calculated absorption rates.

Crude oil contains varying amounts of wax, or paraffin, and in colder climates wax buildup may occur within a
pipeline. Often these pipelines are inspected and cleaned using pipeline inspection gauges pigs, also known as
scrapers or Go-devils. Smart pigs are used to detect anomalies in the pipe such as dents and holes in the coating.
These devices are launched from pig-launcher stations and travel through the pipeline to be received at any
other station down-stream, cleaning wax deposits and material that may have accumulated inside the line.

For natural gas, pipelines are constructed of carbon steel and varying in size from 2 to 60 inches (51 to 1,500
mm) in diameter, depending on the type of pipeline. The gas is pressurized by compressor stations and is
odorless unless mixed with a mercaptan odorant where required by a regulating authority.

PNG is mainly methane – CH4 with a small percentage of other higher hydrocarbons. The ratio of carbon to
hydrogen is least in methane and hence it burns almost completely making it the cleanest fuel. It is procured
from the oil / gas wells and transported through a network of pipelines across the country.

BENEFITS OF PNG

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Knowing fully well that Piped Natural Gas is the obvious choice for us to make, wouldn't it be apt if we called PNG Positively Nat
Gas!!

PNG has several distinctions to its credit- of being a pollution-free fuel, easily accessible minus storage troubles, and being availab
very competitive rates.

When you choose PNG, you are making a wise decision. Why not enhance your comfort and improve your lifestyle for the years to
come? Experience the versatility and performance of this reliable energy source. With PNG you don't need to make any choices, fo
characteristics make it the best option for domestic and commercial purposes.

• Uninterrupted su
The source of PNG supply in Delhi is the famous Hazira-Bijaipur-Jagdishpur (HBJ) pipeline of GAIL (India) Lim
PNG offers the convenience of ensuring continuous and adequate supply of PNG at all times, without any problem
storing gas in cylinders.

• Unmatched convenience
The domestic consumers have to take upon themselves the trying task of booking an LPG cylinder refill, time and a
Then starts the wait for the deliveryman to deliver the cylinder. Switching over to PNG renders this entire exe
unnecessary. PNG also eliminates the tedious routine of checking LPG refill cylinder for any suspected leakage, or it b
underweight, at the time of delivery. Moreover, the user is spared the inconvenience of connecting and disconnecting
LPG cylinder when out of gas. Precious space, occupied by LPG cylinders is also saved.

• Safety
The combustible mixture of natural gas and air does not ignite if the mixture is leaner than 5% and richer than 15% o
air-fuel ratio required for ignition. This narrow inflammability range makes PNG one of the safest fuels in the world. Sa

Natural gas is lighter than air. Therefore, in case of a leakage, it just rises and disperses into thin air given adeq
ventilation. But LPG being heavier will settle at the bottom near the floor sur

A large quantity of LPG is stored in liquefied form in a cylinder. With PNG, it is safer since PNG installation inside
premises contains only a limited quantity of natural gas at low pressure i.e. 21 millibar (m

On leakage, LPG expands 250 times, which is not the case with PNG. Supply in PNG can be switched off thro
appliance valve (inside the kitchen) and isolation valve (outside kitchen premises), which fully cuts off the gas supply.

• Billing
The user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is
according to the meter. A unique feature is that the user gets to pay only after consumption of gas. The domestic consu
pays the PNG bill only once in four mo

Moreover, there are no minimum consumption charges ie, if there hasn’t been any consumption, there shall not be any

The user pays the gas consumption charges based on the exact consumption reading provided by the meter installed a
premises. The bill is delivered at the user’s doorstep. List of collection centers/drop boxes

• Customer sup
Round-the-clock customer support is assured through 24 hrs toll free number 1800112535, 64543592, 64733166
64563655 backed by control rooms, which are manned by engineers and trained technicians. Thus complaints, if any
24
 promptly redressed.

• A versatile
Natural gas is being used predominantly as a versatile fuel in many major cities catering to domestic and comme
applications, as a cooking fuel, for water heating, space heating, air conditioning, etc.

• Environment frie
Natural gas is one of the cleanest burning fossil fuels, and helps improve the quality of air, especially when used in plac
other more polluting energy sources. Its combustion results in virtually no atmospheric emissions of sulphurdioxide (S
and far lower emissions of carbon monoxide (CO), reactive hydrocarbons and carbon dioxide, than combustion of o
fossil f
In fact, when natural gas burns completely, it gives out carbon dioxide and water vapour. These are the very compon
that we exhale!

• No daily liasio
The consumer is spared the task of liasioning with oil companies and co-ordinating with them for ensuring the daily su
of fuel, because PNG is supplied directly through p
The daily bills, settlements and reconciliation are also avoided as the consumer is billed once a month, and that too a
the meter reading.

• No spillage and pilfe

In case of fuels like HSD and LDO, there are considerable chances of spillage and pilferage. In case of PNG these lo
are invariably done away with, for PNG is supplied through pipes.

• Billing - No up-front paym

The user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is
according to the meter. The commercial consumer pays on a monthly basis. Moreover, there are no minimum consump
charges, ie, if there hasn’t been any consumption, there shall not be any bill.The user pays the gas consumption cha
based on the exact consumption reading provided by the meter installed at his premises. The bill is delivered at the u
doorstep.
• Lower maintenance
With PNG, soot or ash accumulation and greasy spillages are absent from your appliance. Maintenance costs are,
driven down.

OBJECTIVES OF THE STUDY

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For any research study there has to be some objectives which can highlight the purpose of doing the research work. The
objectives are:

 To study the advantages and disadvantages of PNG.

 To study the market penetration of PNG.

To find the consumer preference of PNG.

 To study the comparative analysis of PNG and LPG.

 To find out the impact on profitability through shift of customers from LPG to PNG.

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RESEARCH METHODOLOGY
• Desk Research: In this stage we focused on secondary data analysis and looked for
the data on PNG.

• Questionnaire Survey: We prepared a questionnaire and got it filled by our

respondents who are using PNG. They are the residents of NOIDA, GREATER NOIDA
and GHAZIABAD.

RESEARCH DESIGN

 Exploratory experimental Research.

The research is primarily both exploratory in nature. The sources of information are both

primary & secondary. A well-structural questionnaire was prepared and the survey was

conducted to understand the existing users of PNG in NOIDA, GREATER NOIDA and

GHAZIABAD.

SAMPLING FRAMEWORK

THE SAMPLING TECHNIQUE:

• Convenience Sampling

Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling

units. They comprise of the residents of NOIDA ,GREATTER NOIDA and GHAZIABAD.

who are using PNG at their homes.

Sampling Size: 200 customers have been taken as sampling size.

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DATA COLLECTION:
This research was conducted in two phases. In the first phase the study was based on the
results of a wide survey, that is, personal interview with the aid of printed questionnaires. The
second phase of study was conducted by Secondary Research using Google and other
Databases. The internet basically serves the purpose for the same.

Secondary data:

Different published and unpublished (only online) materials basically articles from the
internet have been focused on.
We have studied and gathered information from a number of authentic sources like:
· Books
· Newspapers
· Magazines
· Internet

Primary Data:

For our research we have used only the questionnaire survey method to conduct our analysis.
Questionnaires are of three categories such as structured, un-structured, disguised and
undisguised. But we have used structured questionnaire for our survey. Structured question is
the one which has specified number of responses. Such questions restricted the interviewee
from giving his own answers and required them to choose from among the alternatives given.
This saves a considerable amount of time as the respondents is quick enough to choose from
among the options given to him.

Data Analysis:

The following graphs and table are basically a representation of the respondents in the form
of questionnaire being filled by them.
The number and percentage wise distribution is shown below and also separate analysis of
the graphs has been shown therewith.

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DATA ANALYSIS AND INTERPRETATION

Q1.Showing the response of respondents regarding the preference for a particular Oil
Marketing Company for fuel purchase.

Sl. No. Response No. of Percentage (%)

respondents
1. YES 174 87%
2. NO 26 13%

INTERPRETATION:

From the above analysis it is found that 87% of the respondents prefer fuel from
a particular oil company whereas 13% respondents purchase fuel from different
companies.

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2. Showing the response of respondents regarding the preference
of INDIAN OIL in comparison to others.

Sl. No. Response No. of Percentage (%)

respondents
1. IOCL 98 49%

2 BPCL 66 33%

3. HPCL 24 12%

4. OTHERS 12 6%

INTERPRETATION:
According to the survey conducted, it has been observed that 49% of the respondents prefer
INDIAN OIL for the purpose of purchasing fuel which is followed by BPCL(66%) and
HPCL(24%). Even 6% of the respondents prefer ither companies like ONGC,Reliance
Petroleum Limited etc.

3. Showing the response of respondents about the convenience of PNG as

compared to LPG.
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Sl. No. Response No. of Percentage(%)
respondents
1. AGREE 124 62%
2. DISAGREE 54 27%
3. NEUTRAL 22 11%

INTERPRETATION:
According to survey conducted 62% of the respondents agree that PNG is more convenient
than LPG as they do not find risky and saves their time in booking a cylinder. Whereas 27%
of the respondents say that LPG is more convenient and 11% respondents find both LPG and
PNG convenient.

4. Showing the response of respondents that whether PNG is more

economical than LPG.

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Sl. No. Response No. of Percentage(%)
respondents
1. AGREE 148 74%
2. DISAGREE 52 26%

INTERPRETATION
From the above analysis it has been observed that 74% of the respondents say that it is more
economical to use PNG as it is less costlier than LPG whereas 26% of the respondents say
that LPG is more economical for them.

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5. Showing the response of respondents that whether they are satisfied with
the working of PNG.

Sl. No. Response No. of Percentage(%)

respondents
1. SATISFIED 152 76%
2. NEUTRAL 42 21%
3. DISSATISFIED 6 3%

INTERPRETATION:
The above analysis shows that 76% of the respondents are satisfied with the working of PNG
and 3% of the respondents do not agree with it. Whereas 21% of the respondents said that
they do not find any difference between the two.

6. Showing the response of respondents regarding the problem of leakage.

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Sl. No. Response No. of Percentge(%)
respondents
1. PNG 12 6%
2. LPG 188 94%

INTERPRETATION:
According to the survey conducted 94% of the respondents say that the problem of leakage
mostly occurs with LPG due to several reasons like defective cylinder which creates risk and
also injures people.

7. Showing the response of respondents that whether PNG reduces the

chances of accidents.

Sl. No. Response No. of responents Percentage(%)

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1. AGREE 174 87%
2. DISAGREE 22 11%
3. NEUTRAL 4 2%

INTERPRETATION:
The above analysis shows that 87% of the respondents agree that PNG reduces the chances of
accidents as compared to LPG whereas 11% of the respondents do not agree with the same.

8. Showing the response of respondents that whether PNG reduces the

tedious task of booking an LPG cylinder.

Sl. No. Response No. of Percentage(%)

respondents
1. AGREE 178 89%
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2. DISAGREE 22 11%

INTERPRETATION:
According to the above analysis 89% of the respondents say that PNG reduces the tedious
task of booking a cylinder whereas 11% of the respondents do not find booking a cylinder as
a tedious task.

9. Showing the response of respondents that whether there exists any kind
of pilferage as far as billing is concerned.

Sl. No. Response No. of Percentage(%)

respondents
1. AGREE 108 54%
2. DISAGREE 92 46%

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INTERPRETATION:
The above analysis shows that 54% of the respondents say that there exists problem in the
case of PNG while billing is done whereas 46% of the respondents say that there does not
exist any kind of pilferage as far as billing is concerned.

10. Showing the response of respondents regarding uninterrupted supply of

gas without inconvenience.

Sl. No. Response No. of Percentage(%)

respondents
1. YES 136 68%
2. NO 64 32%

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 INTERPRETATION:
According to the above analysis 68% of the respondents say that there is an uninterrupted
supply of gas when they use PNG whereas 32% do not agree with the same.

FINDINGS OF THE STUDY

On the basis of Primary data analysis:

I surveyed 200 respondents as in total and on the basis of the questionnaires being filled by
them, I can say that:

• Around 87% of the respondents prefer a particular Oil Marketing Company for purchasing
fuel.
• Amongst all the competitors BPCL is the biggest threat for IOCL followed by HPCL.
• It has been observed that majority of the respondents (62%) find PNG more
convenient than LPG.
• Around 74% of the respondents find PNG more economical as compared to LPG.
• More than 3/4th of the people that is 76% people are satisfied with the working of
PNG.
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 • Maximum respondents i.e. 94% people say that the problem of leakage occurs mostly
in the case of LPG.
• 87% of the people surveyed agreed that PNG reduces the chances of accidents.
• Around 89% people feel that PNG reduces the tedious task of booking an LPG
cylinder.
• Almost half of the people disagree that there exists any kind of pilferage as far as
billing is concerned.
• 68% of the respondents said that there is uninterrupted supply of gas without
inconvenience in case of PNG.

LIMITATIONS OF THE STUDY

While surveying we encountered with some problems like-

• A survey should involve a larger sample size otherwise the findings of the survey
cannot be generalized.

• Collecting Primary Data with the help of Questionnaire increases the time and cost.

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 • Many of the respondents were not willing to fill the questionnaire.

• Some people were not willing to respond and few of them who
responded were in hurry hence the active participation was lacking. Due to which we
faced difficulties in collecting information’s regarding our questionnaire.

• Another problem which we faced was that people were hesitant to give information
about their views freely.

CONCLUSION

Thus,on the basis of the research done it can be concluded that PNG is rapidlly growing
everywhere and the existing users are found very much satisfied with its working as they find
it more convenient and less costlier than LPG. It saves time and energy of booking cylinder
and also reduces the chances of accidents. The another benefit of PNG is that it does not have
leakage problem and also provides uninterrupted supply..
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 BIBLIOGRAPHY

Books:

• Kothari ,C.R. ,”Research Methodology “ Sultan Chand Publication,

New Delhi ,2004.

• T.N. Chhabra,”Marketing Management”

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 • Philip Kotler, “Marketing Management -Kevin Lane Keller.

Web Pages:
• http://www.iocl.com/aboutus.aspx

• http://www.lpg.in/index.html

• http://en.wikipedia.org/wiki/Pipeline_transport

• http://www.iglonline.net/BenefitsPNG.aspx

• http://www.iglonline.net/AboutPNG.aspx

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